SILVER(SZ:300221)2024-04-18 12:41Financial Performance - Net profit attributable to shareholders of the listed company in Q1 2023 was 1,759,465.86, while in Q2 it was 14,523,250.00, showing a significant increase[12] - The company's operating income in Q3 2023 was 445,638,418.49, with a net profit of 10,410,840.28[12] - In Q4 2023, the company's operating income was 458,114,728.49, but the net profit dropped to 336,477.93[12] - Revenue in 2023 decreased by 9.79% year-over-year to RMB 1,665,378,003.70[32] - Net profit attributable to shareholders of the listed company increased by 594.62% year-over-year to RMB 27,030,034.07[32] - Net cash flow from operating activities decreased by 83.20% year-over-year to RMB 57,234,067.79[32] - Total assets increased by 4.07% year-over-year to RMB 1,845,268,199.04[32] - Equity attributable to shareholders of the listed company increased by 4.57% year-over-year to RMB 1,303,868,026.09[32] - The company achieved operating income of 1.665 billion yuan, a year-on-year decrease of 9.79%[79] - Operating profit increased by 1849.77% year-on-year to 39 million yuan[79] - Net profit attributable to the parent company increased by 594.62% year-on-year to 27 million yuan[79] - Net cash flow from operating activities decreased by 83.20% year-on-year to 57.234 million yuan[60] - Net cash flow from investing activities increased by 64.44% year-on-year to -87.086 million yuan[60] - Net cash flow from financing activities increased by 108.52% year-on-year to 11.89 million yuan[60] Profit Distribution and Equity - The company's undistributed profit as of December 31, 2023, was 598,970.42, a significant increase from 219,054.21 in 2022[1] - Minority shareholders' equity as of December 31, 2023, was 76,972.51, up from 64,405.43 in 2022[1] - The company's profit distribution plan for 2023 is to distribute 0 cash dividends per 10 shares and 0 bonus shares per 10 shares[24] Government Subsidies and Non-Operating Income - The company's government subsidies in 2023 amounted to 6,348,198.90, an increase from 4,773,482.94 in 2022[13] - Non-operating income included government subsidies of 13,474,606.47 RMB, accounting for 49.04% of total profit[84] Production Capacity and Utilization - The company's modified plastics production capacity is 200,000 tons with a utilization rate of 57.94%[48] - The company is constructing an additional 120,000 tons of production capacity, which is a transfer of existing capacity[48] - The company's intelligent lighting strip production capacity is 10 million meters with a utilization rate of 26.72%[48] - The company's intelligent lighting fixture production capacity is 3 million sets with a utilization rate of 58.03%[48] Product Performance and Market - The company's core product, high-transparency, high-flame-retardant polycarbonate material, has entered the supply chain of internationally renowned smart lighting companies such as Philips, Osram, and Opple[50] - The company's modified plastic products achieved operating income of 1.382 billion yuan, a year-on-year decrease of 8.80%[51] - Sales volume of modified plastics decreased by 3.40% year-on-year to 115,374 tons[52] - Production volume of modified plastics decreased by 3.31% year-on-year to 115,879 tons[52] - Inventory volume of modified plastics increased by 6.99% year-on-year to 7,727 tons[52] Corporate Governance and Compliance - The company's governance structure complies with the requirements of the "Guidelines for Corporate Governance of Listed Companies" and the "Self-Regulatory Guidelines for Listed Companies of the Shenzhen Stock Exchange No. 2 - GEM Listing and Operation"[17] - The company has established independent labor, personnel, and distribution management systems, with senior management and financial personnel not holding positions or receiving compensation from major shareholders or their affiliates[126] - The company has engaged Lixin Certified Public Accountants (Special General Partnership) for 8 consecutive years, with audit service fees amounting to 900,000 RMB[134] - The company and its subsidiaries have complied with environmental laws and regulations, with no significant penalties for environmental violations during the reporting period[135] - The company has no controlling shareholder or actual controller, and will continue to improve internal control systems and strengthen financial management, internal audit, and risk management to ensure healthy and stable development[146] - The company will deepen its understanding of the latest laws and regulations, standardize information disclosure, and enhance the quality of disclosure to protect the rights of investors, especially minority shareholders[146] - The company held 9 board of supervisors meetings in 2023, ensuring compliance with laws and regulations and maintaining transparency in information disclosure[148] - The company's actual governance status is in line with the regulations issued by laws, administrative regulations, and the China Securities Regulatory Commission, with no significant differences[150] Investments and Projects - Investment in the Dongguan Songshan Lake High Polymer New Materials Industrial Park project reached 258,972,333.06 RMB, with a completion rate of 74%[94] - The Zhuhai New Materials Production Base project had an investment of 84,638,335.12 RMB, with a completion rate of 57%[94] - The Anhui Chuzhou Yinxi High Polymer Materials Project (Phase I) was fully completed with a total investment of 51,743,207.09 RMB[94] - The company's total derivative investment for hedging purposes amounted to 6,428.42 million yuan, with a final investment balance of 1,658.82 million yuan, accounting for 1.27% of the company's net assets at the end of the reporting period[98] Risk Management and Hedging - The company's actual loss from forward exchange and hedging activities in 2023 was -728,500[20] - The company has established strict authorization and position systems, strengthened professional ethics education, and improved the comprehensive quality of relevant personnel to mitigate internal control risks in hedging transactions[113] - The company's hedging transactions are conducted in major domestic futures markets with high transparency and active trading, ensuring fair value is reflected in transaction prices and daily settlement prices[113] - The company has implemented measures to reduce technical risks in hedging transactions by selecting multiple channels and ensuring system stability[113] Legal and Compensation Issues - The company faces risks related to performance compensation obligations, with legal actions taken against individuals who failed to fulfill their compensation commitments[154] - The company won a lawsuit against Hu Enci and Chen Zhiyong, with a total compensation of 110.7461 million yuan (including cash compensation, dividend refund, and litigation costs, excluding interest fees for delayed payments). Chen Zhiyong is required to pay 64.4361 million yuan (including the value of 2,035,028 shares, cash compensation, dividend refund, and litigation costs, excluding interest fees for delayed payments). However, the enforcement of the judgment has been ineffective, and there is a risk that the debt may not be recovered[155] Accounts Receivable Management - The company has strengthened accounts receivable management through pre-credit analysis, in-process control, and post-collection tracking. To further secure accounts receivable, the company and its subsidiaries have signed accounts receivable credit insurance contracts to reduce bad debt losses[156] International Expansion - In early 2024, the company established a subsidiary, Yinshi Technology (Vietnam) Co., Ltd., in Vietnam. The company plans to accelerate the construction and operation of the Vietnam subsidiary, expand overseas markets through marketing teams and exhibitions, and lay a solid foundation for future profit growth[157] Equity Incentive Plan - The company's 2023 annual revenue was 1.665 billion yuan, a decrease of 9.79% year-on-year, falling short of the 2.2 billion yuan target set for the 2021-2023 equity incentive plan. As a result, the company will repurchase and cancel the restricted shares held by the incentive recipients, which may lead to the loss of some core personnel[179] Strategic Focus and R&D - The company continues to focus on the modified plastics industry, leveraging its technical, customer, service, and product quality advantages. Future efforts will include increasing R&D investment, developing high-end and environmentally friendly modified plastics, and focusing on the new energy industry chain[180] - The company aims to expand its market share in modified plastics and explore new application areas. It will focus on developing high-margin products and targeting new customers while deepening relationships with key clients[181] - The company plans to continue increasing R&D investment to drive technological innovation and maintain its competitive edge[104] - The company will continue to actively promote the research and development of 3D printing materials, solidifying research results and advancing the industrialization process of the project[116] - The company plans to improve technical research levels through continuous investment in capital, talent, and technology, and will launch differentiated modified plastic products to avoid highly competitive market areas[123] Board and Management Changes - The company's board of directors and senior management underwent changes, with two independent directors completing their terms and two new independent directors being elected on July 21, 2023[183] - The company's total compensation for directors, supervisors, and senior management in 2023 amounted to RMB 7.6997 million[197] - The company's board of directors includes key figures such as Tan Wenzhao (Chairman), Zhou Juan (Vice Chairman), and Lin Dengcan (General Manager and Director), with Lin Dengcan holding 10,070,700 shares[191] - Zhang Deqing, a key executive, holds multiple leadership roles, including General Manager of the PVC Division and Director of several subsidiaries[184] - The company's governance structure includes a board of supervisors with 3 members, ensuring compliance with legal and regulatory requirements[187] - The company has established a comprehensive governance framework, including rules for the board of supervisors to oversee major company matters and financial status[187] - The company's senior management, including Lin Dengcan, has extensive experience and holds significant positions across various subsidiaries[189] - The company's independent directors, such as Zhao Jianqing and Wei Long, bring diverse expertise from academia and legal fields[190][185] - The company's financial and operational leadership includes Tan Ying, who has been with the company since 2011 and holds multiple directorial roles[193] - The company's governance practices include a remuneration and assessment committee responsible for setting and reviewing compensation for directors and senior management[196] Board Meetings - The 5th Board of Directors held its 29th meeting on April 7, 2023, with the disclosure date on April 11, 2023[199] - The 5th Board of Directors held its 30th meeting on April 17, 2023[199] - The 5th Board of Directors held its 31st meeting on May 16, 2023, with the disclosure date on May 17, 2023[199] - The 5th Board of Directors held its 32nd meeting on July 3, 2023, with the disclosure date on July 4, 2023[199] - The 5th Board of Directors held its 33rd meeting on July 10, 2023, with the disclosure date on July 10, 2023[199] - The 6th Board of Directors held its 1st meeting on July 21, 2023, with the disclosure date on July 21, 2023[199] - The 6th Board of Directors held its 2nd meeting on August 7, 2023, with the disclosure date on August 9, 2023[199] - The 6th Board of Directors held its 3rd meeting on September 26, 2023, with the disclosure date on September 26, 2023[199] - The 6th Board of Directors held its 4th meeting on October 23, 2023, with the disclosure date on October 23, 2023[199] - Directors raised objections regarding certain company matters[200]